EUR/USD steady below 1.1300 ahead of Powell

The US dollar remains steady in market posting mix results, unaffected by US Q3 GDP data.
EUR/USD moves between 1.1270 and 1.1290 ahead of Powell’s speech.

Matías Salord FXStreet

The EUR/USD pair is trading in a 20-pips range around 1.1280, marginally lower for the day. The pair has been steady and it manged to hold above daily lows despite some US dollar strength versus the pound and the yen.

The rebound in EUR/GBP could have help EUR/USD remain in the range. Ahead of Chairman Powell’s speech, the bias remains to the downside but it is consolidating. A break below 1.1265 could open the doors to further losses while a rebound from current levels could be seen as a signal that the euro hast bottomed in the very short term.

Data released earlier today, showed that the US economy expanded at an annualized 3.5% during the July-September period, similar to the previous estimate and in line with market consensus.

EUR/USD Short-term levels to watch

To the upside, resistance is seen around 1.1290 (upper limit of current range and 20-hour moving average), followed by 1.1305 and 1.1325. On the downside, 1.1265 is a strong support that if broken could open the doors for a slide to 1.1240 and below the November low at 1.1215 would be exposed.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD falls toward 1.1700 on broad USD recovery

EUR/USD turns south and declines toward 1.1700 on Wednesday. The US Dollar gathers recovery momentum and forces the pair to stay on the back foor, as traders look to USD short-covering ahead of US inflation report on Thursday. However, the downside could be capped by hawkish ECB expectations.

GBP/USD trades deep in red below 1.3350 after soft UK inflation data

GBP/USD stays under strong selling pressure midweek and trades below 1.3350. The UK annual headline and core CPI rose by 3.2% each, missing estimates of 3.5% and 3.4%, respectively, reaffirming dovish BoE expectations and smashing the Pound Sterling across the board ahead of Thurday's BoE policy announcements.

Gold clings to moderate daily gains above $4,300

Following Tuesday's volatile action, Gold regains its traction on Wednesday and trades in positive territory above $4,300. While the buildup in the USD recovery momentum caps XAU/USD's upside, the cautious market stance helps the pair hold its ground.